Rackspace Technology (NASDAQ:RXT) Trading Down 5.7% – Time to Sell?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price fell 5.7% during mid-day trading on Thursday . The company traded as low as $2.63 and last traded at $2.65. 169,227 shares were traded during mid-day trading, a decline of 85% from the average session volume of 1,123,939 shares. The stock had previously closed at $2.81.

Wall Street Analysts Forecast Growth

Separately, UBS Group lifted their price target on Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a research note on Friday, August 16th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $2.15.

Rackspace Technology Stock Performance

The stock has a market capitalization of $587.68 million, a price-to-earnings ratio of -0.70 and a beta of 1.98. The business has a 50-day moving average of $2.43 and a 200-day moving average of $2.26.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Thursday, August 8th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.03. The firm had revenue of $684.90 million during the quarter, compared to analyst estimates of $669.10 million. On average, research analysts predict that Rackspace Technology, Inc. will post -0.32 earnings per share for the current fiscal year.

Insider Buying and Selling at Rackspace Technology

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 149,249 shares of the company’s stock in a transaction that occurred on Thursday, July 25th. The stock was sold at an average price of $2.36, for a total transaction of $352,227.64. Following the completion of the sale, the executive vice president now directly owns 2,466,593 shares of the company’s stock, valued at $5,821,159.48. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, CEO Amar Maletira sold 52,206 shares of the stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $2.35, for a total transaction of $122,684.10. Following the completion of the transaction, the chief executive officer now directly owns 5,347,434 shares of the company’s stock, valued at approximately $12,566,469.90. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 149,249 shares of the stock in a transaction that occurred on Thursday, July 25th. The stock was sold at an average price of $2.36, for a total value of $352,227.64. Following the transaction, the executive vice president now directly owns 2,466,593 shares of the company’s stock, valued at approximately $5,821,159.48. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 376,570 shares of company stock valued at $894,330 in the last ninety days. Insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

A number of large investors have recently modified their holdings of the business. Creative Planning acquired a new stake in shares of Rackspace Technology in the 3rd quarter worth approximately $29,000. Susquehanna Fundamental Investments LLC acquired a new stake in shares of Rackspace Technology in the 1st quarter worth approximately $35,000. Allspring Global Investments Holdings LLC acquired a new stake in shares of Rackspace Technology in the 2nd quarter worth approximately $40,000. Mitsubishi UFJ Trust & Banking Corp grew its holdings in shares of Rackspace Technology by 98.2% in the 1st quarter. Mitsubishi UFJ Trust & Banking Corp now owns 33,263 shares of the company’s stock worth $51,000 after acquiring an additional 16,484 shares during the period. Finally, SG Americas Securities LLC grew its holdings in shares of Rackspace Technology by 64.7% in the 3rd quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock worth $84,000 after acquiring an additional 13,543 shares during the period. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.